due to a shortage of parts, the demand for cars exceeds the available supply. what is the most likely effect…
due to a shortage of parts, the demand for cars exceeds the available supply. what is the most likely effect of this imbalance?\ncar prices will rise.\ncar prices will drop.\ncar production will stop.\ncar production will increase.
Answer
Brief Explanations:
According to the law of supply and demand, when demand exceeds supply, prices tend to rise. In this case, with car - part shortages causing supply to be less than demand, car prices are likely to increase.
Answer:
Car prices will rise.